TMI Blog2008 (7) TMI 362X X X X Extracts X X X X X X X X Extracts X X X X ..... Rs. 13,17,243 – Held that in order to ensure that work of handling goods are done within a reasonable time and to handle emergency operations of cargo handling beyond the working hours, such payments are made either through labour or workers’ union, cannot be considered to be either prohibited by law and further the assessee cannot be expected to take the receipt from individual workers or make payment by way of cheques. Expenditures are allowed to be deducted. - 603 of 2004 - - - Dated:- 28-7-2008 - K. L. MANJUNATH and B. V. NAGARATHNA JJ. M. V. Seshachala for the appellants. S. Parthasarathi for the respondent. JUDGMENT The judgment of the court was delivered by B. V. NAGARATHNA J.- This appeal is filed by the Reven ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... an appeal before the Commissioner of Income-tax (Appeals) -II, Bangalore, who by his order dated July 31, 2000, rejected the appeal of the assessee. Against the said order, the assessee had preferred an appeal before the Income-tax Appellate Tribunal. While discussing the nature of the payments made, the Tribunal allowed the appeal of the assessee. It is against the said order that this appeal has been filed on various substantial questions of law. When this appeal was admitted since no substantial questions of law were formulated, after hearing, in our view, the only substantial question of law which arises is whether the Tribunal was correct in holding that it was a burden on the Assessing Officer to verify the reasonableness of expendit ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... in respect of the individual concerned, it would be impossible to produce receipts from the persons to whom payments had been made and also to make payments by way of cheques to the workers. He further submits that considering the nature of business of the assessee and the fact that in order to have a good working relationship with the dock and port workers, such an arrangement had been made and, therefore, it has to be considered as a business expenditure and deduction ought to be granted. 7. We have perused the orders passed by the authorities below and taking into consideration the assessee's business and the prevailing practice in the trade, whereby payments have to be made by the firms such as the assessee in order to ensure that w ..... X X X X Extracts X X X X X X X X Extracts X X X X
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